BackIncome Tax department holds searches in UP, Maharashtra
The search operation held last Friday covered over 40 premises across Uttar Pradesh, Maharashtra, Delhi, Tamil Nadu and Gujarat, the statement said.
PremiumNew Delhi: The Income Tax department has searched the premises of two business groups engaged in perfume manufacturing and real estate leading to detection of tax evasion, unreported overseas investments and other irregularities, the tax department said in a statement on Wednesday.
The search operation held last Friday covered over 40 premises across Uttar Pradesh, Maharashtra, Delhi, Tamil Nadu and Gujarat, the statement said.
Searches revealed that one of the groups primarily based in Mumbai and UP has been involved in alleged tax evasion by under-reporting sale of perfumes, stock manipulation, fudging books of account to shift profits from taxable unit to tax exempt unit and by inflating expenditure.
Evidence found in the sales office and main office have revealed that the group makes 35% to 40% of its retail sales in cash using informal invoices and the cash receipts have not been recorded in the regular books of account, running into crores of rupees, the statement said. Evidence of booking purchases from bogus entities to the extent of about Rs. five crore has also been unearthed.
Evidence showed unaccounted income is invested in real estate projects in Mumbai and purchase of properties in India and in The United Arab Emirates (UAE), the statement said. It has also been detected that the group has allegedly evaded tax of Rs. 10 crore on conversion of the stock-in-trade to capital as corresponding income has not been declared. The department has taken evidence showing that promoters of the group have incorporated some offshore entities which have not been reported in their income tax returns.
Search on the other UP-based group led to seizure of incriminating evidences substantiating unrecorded cash transactions of about Rs. 10 crore, the statement said. It is also gathered that the group is not maintaining any stock register for its inventory. Unaccounted cash and unexplained jewellery have been seized and several bank lockers have been placed under restraint and are yet to be operated, the tax department statement said. (ends)
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